Bank of America ($45 billion TARP Bailout) is suing the FDIC

Yes America, Hank Paulson and Timmy Geithner bailed

out their banking buddies as it was imperative to strengthen

our financial system in order to help Main Street...

Bank of America is simply displaying their affection and appreciation

for those of us on Main Street.

By Jonathan Stempel
10/20/10
NEW YORK, Oct 20 (Reuters)
Bank of America Corp the largest U.S. bank, has sued the Federal Deposit Insurance Corp over $1.75 billion of investor losses mainly from the 2009 collapses of a large regional bank and large mortgage lender.

The lawsuit concerns the FDIC's role as receiver for the main banking unit of Alabama's Colonial BancGroup Inc, and the implosion of Taylor, Bean and Whitaker Mortgage Corp, where federal prosecutors say a multi-billion dollar mortgage fraud took place. Bank of America is trustee for notes issued by Taylor Bean's Ocala Funding LLC unit.

In a complaint filed this month in Washington, D.C. federal court, Bank of America said the FDIC has wrongly denied claims by Ocala noteholders to recover from Colonial Bank and an Illinois lender also in receivership, Platinum Community Bank.

Bank of America accused executives at Taylor Bean, Colonial and Platinum of having fraudulently schemed to "double- and triple-pledge mortgages and steal assets" to hide their faltering conditions as the housing market declined.

It said Ocala used proceeds from note sales to Deutsche Bank AG and BNP Paribas SA to buy Taylor Bean mortgages, but is no longer able to repay noteholders.

Bank of America said that the FDIC is legally required to cover these valid claims, and that the agency's only explanation for denying the claims has been they have "not been proven."

The Charlotte, North Carolina-based lender is seeking a court order directing the FDIC to pay the claims.

FDIC spokesman David Barr declined to comment.

Colonial had $25 billion of assets when it collapsed in August 2009 and was the largest U.S. lender to fail that year. Platinum failed in September 2009 with $346 million of assets.

Prosecutors accused Taylor Bean's former chairman in June of engineering a $1.9 billion fraud scheme and trying to cheat the Troubled Asset Relief Program, from which Colonial had sought to raise $553 million.

The North Carolina lender BB and T Corp bought most of Colonial Bank's assets. Colonial BancGroup and Taylor Bean have sought bankruptcy protection.

Deutsche Bank and BNP Paribas have sued Bank of America in New York and Florida courts over their Ocala losses. Bank of America on Friday asked a Manhattan federal judge to stop the Florida lawsuits, saying their alleged damages overlap.